Sony in Talks to Buy Kadokawa, Owner of Elden Ring and Dark Souls Developer FromSoftware

Pandemic-driven media consolidation continues as Sony seeks to expand its gaming and entertainment empire

Sony is reportedly planning to buy Kadokawa Corp., a Japanese media conglomerate that owns FromSoftware, the developer of popular video game franchises such as Elden Ring and Dark Souls. An acquisition would boost Sony's gaming portfolio and provide it with access to new and popular intellectual properties.

The report comes amid a wave of consolidation in the media industry, as companies seek to gain scale and compete with streaming giants like Netflix and Disney+. In recent months, AT&T spun off its WarnerMedia division, which was acquired by Discovery, while Amazon bought MGM Studios.

An acquisition of Kadokawa would give Sony control of a vast library of intellectual property, including popular anime franchises such as "Demon Slayer" and "Sword Art Online." It would also add to Sony's already strong gaming lineup, which includes the PlayStation console and exclusive titles such as "God of War" and "Uncharted."

FromSoftware's role in the deal

FromSoftware is one of the most critically acclaimed video game developers in the industry, and its games are known for their challenging difficulty and immersive worlds. The studio's latest release, Elden Ring, has been a massive success, selling over 12 million copies worldwide.

An acquisition of Kadokawa would give Sony exclusive access to FromSoftware's future games, which could be a major draw for gamers. It would also allow Sony to tap into FromSoftware's expertise in game development and create new and innovative titles for its own platforms.

Impact on the gaming industry

If the deal goes through, it would be a major consolidation in the gaming industry. Sony would become one of the largest gaming companies in the world, with a portfolio that includes some of the most popular franchises in the industry.

It remains to be seen how the deal would affect FromSoftware's creative independence. The studio has been known for its uncompromising vision, and it's unclear whether Sony would allow it to continue to operate with the same level of autonomy.

Conclusion

The reported talks between Sony and Kadokawa are a sign of the continued consolidation in the media industry. If the deal goes through, it would give Sony a major boost in its gaming and entertainment businesses.